Summary of Committee meeting on the 28th November 2021
In attendance: Brian O'Connell (BOC), Mark Haslam (MH), Andy Wood (AW), Kate Harding (KH), Dan Herbert (DH), Mark Gent (MG), Nic Comley (NC), Rob Rankin (RR).
Note: Any decisions of a material nature mentioned herein are merely recommendations and/or reflect current line of thinking within the committee given knowledge to hand. Where binding decisions are necessary, especially financial, they will be put to the community for discussion and approval.
BOC: Presentation of an analysis of the questionnaires that had been returned so far by residents and potential investors.
NC: Reminder that personal data (names, email addresses, contact tel nos) ‐ much of which appears on the completed questionnaires ‐ needs to be held securely in order to satisfy GDPR.
NC: There are 1137 households in West Malvern.
Business financial analysis
NC discussed and commented on the first pass financial analysis that has been created (mostly by MH with assistance from AW). The analysis was generally sound. However, it was felt that the expected uplifts in revenue, especially for years two and three were a bit optimistic, moreover the rental to be charged to the tenant was too low. On staff wages, it was recommended to ensure that they were budgeted on paying the living wage as opposed to the minimum wage.
DH asked a question as to who paid for the initial stock in the pub (i.e. the drinks, crisps etc. needed to open on day one). NC said that was the responsibility of the tenant, not the community/committee.
NC stated that in making any grant applications we need to make sure we stand out with respect to certain key areas, such as disabled access. But we equally need to make sure that we can deliver on any promises. The view of the committee is that we cannot rely on obtaining any grants.
NC: The committee needs a bank account into which shareholders can pay. Can use the present one (set up for the possibly buyout opportunity in 2016) for day-to-day sundries. But need another one for the shareholder contributions.
NC: Need to register a CBS (Community Benefit Society) with the FCA (Financial and Conduct Authority).
BOC has notified Admiral of our interest
NC: Need to get an accountant to advise on VAT position, specifically whether VAT is payable on the amount we offer to Admiral? Issue as to whether the pub is being sold as a going concern (because the sale has been triggered by an ACV). Also whether the EIS (Enterprise Initiative Scheme) applies.
NC: Model rules of the CBS need to be sent to the Plunkett Foundation.
The meeting created a first draft of model rules, based on a standard template with those present filling in the gaps as desired. Registered address will be 26 Mathon Road, Malvern WR14 4BU. Suggested that maximum shareholder investment be £25k. (Standard rules direct that maximum investment can’t be more than 10% of amount being raised.)
It was agreed that the committee recommends that the share price should a minimum of £250.
Meeting closed: 5.45pm.